There are two directories that interact together for the hostname:
/etc
/etc/sysconfig/networking/profiles/default

There is some type of linkage between the files hosts, ifcfg-ethx, network, and resolv.conf in these directories. It is not a symbolic link, but it’s there. (Haven’t been able to find anyone to explain how they are linked)

If you interact with the Network Gui, you will basically update the files in the sysconfig directory, which in turn updates the files in the /etc directory.

The actual changing of names.

1) At command prompt {as root}
# hostname {new-hostname} <enter>
(you can use the verbose if you like, -v).

2)Start up the network gui, either by start menu navigation or
# redhat-config-network <enter>